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Monthly Archives: August 2015

Being able to accept EMV cards isn’t as simple as flipping a switch on your existing terminals. In most cases you’ll have to physically replace your POS equipment to be able to accept these more secure, chip-enabled cards. And with only half of merchants expecting to be ready by the October 1 deadline, there’s a lot of work still to be done.

What does the Liability Shift Really Mean?

Currently, merchants are at quite a disadvantage when it comes to credit card fraud. In the event of a fraudulent credit card charge, the merchant is first faced with the loss of the merchandise, which in most cases is irreversible. Then, the cardholder’s bank (the card-issuing bank) takes the hit for the lost funds, meaning that they’re responsible for refunding the person who was the victim of fraud. These banks, however, often look to the merchant for reimbursement, claiming that the business didn’t take the proper measures to prevent the fraudulent charge from occurring.

Come October 1, what we know about fraud liability will be flipped upside down. In essence, once the shift hits, the fraud liability will transfer to the party that has not adopted the new EMV chip card technology.

Here’s a detailed look at how the liability shift will affect your business, depending on the situation in which fraud occurs:

Situation 1: A magnetic stripe card is swiped at an outdated terminal

The merchant hasn’t gotten around to updating their terminals, but lucky for you, the fraudulent charge was made with a traditional magnetic stripe card. In this situation, both parties—the merchant and the card-issuing bank—are at fault, meaning that the liability falls initially on the card-issuing bank, just like today.

Situation 2: An EMV chip card is swiped at an outdated terminal

This is when things really go downhill for merchants. If a customer comes into your store with a chip-enabled card, but they don’t have the equipment to process it properly, they’ll be forced to run it as a magnetic stripe card. This puts the cardholder at an unnecessary risk for a breach of their payment data. In this case, the merchant has not invested in the more secure chip technology and the card-issuing bank has, so the liability falls on the merchant.

Situation 3: A magnetic stripe card is swiped at an EMV-enabled terminal

A recent poll shows that only one in 10 Americans have received new EMV chip cards from their banks. The cost to replace mag stripe credit cards is starting to catch up with the banks and we can expect a number of consumers to still be using magnetic stripe cards, even after the liability shift hits in October. In this case, so long as you have upgraded your equipment, the liability will fall on the card-issuing bank.

Situation 4: An EMV chip card is swiped at an EMV-enabled terminal

In this situation, all parties have put in the effort to upgrade their payment technologies, so it’s unlikely that fraud would even occur in the first place. However, if a fraudulent charge does occur, the liability would fall on the card-issuing bank.

Contact your merchant solutions provider today to find out how you can get EMV-compliant by October 1.

Abtek is here to help merchants like you make the transition from traditional POS terminals to EMV-enabled equipment. We know that EMV can be confusing, and we’re here to answer all of your questions. Give us a call today at (800) 544-9145 to explore your options, before it’s too late! October 1 will be here before you know it! Follow us on Facebook, Twitter, and LinkedIn.

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Tami Cohorst, our vice president, was recently featured on PaymentsSource, a global online resource for all things payment-related. Take a look at what she had to say about the future of mobile payments, according to data collected from social media:

Mobile payments are quickly becoming an integral part of consumers’ daily lives. In order for businesses to stay competitive, it’s important for them to stay on top of the trends in the industry.

Social media is an important way to accomplish that. It has emerged as a major influence on the mobile payment processing landscape. Payment service providers, financial institutions and merchants are monitoring online conversations and developing processes and technology based on what consumers want in terms of mobile payment experiences.

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Not all credit card processors are the same. Some processors are truly dedicated to your business’s success while others–well, let’s just say they have other priorities. Here are a few warning signs that may indicate it’s time for you to make a change:

They’re Not Open and Honest About their Fees

One of the biggest complaints we hear about other processors is that they’re not honest about the fees they charge. Unless they have something to hide, there’s no reason for a processor to keep their fees a secret. Honest communication is the key to a strong relationship, after all! Here at Abtek, we don’t play games with our clients—we tell them right up front exactly how much they’ll be charged and why. Take a look at our fee breakdown to learn more.

They Don’t Offer 24/7/365 Customer Service

In the real world, a question or problem can arise at any time of day. Your processor should be available to help you solve your payment processing challenges whenever the need arises—even if it is at the crack of dawn on a Saturday morning.

They’re Not in it for the Long Run

Unfortunately, some credit card processors are only in it for the money—and once the money stops flowing, they drop their clients and move on the next big idea. If you get the feeling that your processor is less than dedicated to your success, you should get out, quick, because your business deserves to have unwavering support. One of the easiest ways to tell if a processor is in it for the long run is to take a look at its history. How long has it been in business? Does it have reputable clientele?

Abtek has been in business since 1986—that’s almost 30 years! And ever since our start, supporting our customers has been our number one priority. Our business is built on integrity and because of that, we’ve been able to grow a client base that includes everything from retail to B2B to governmental agencies. Take a look at some of our valued clients.

They Don’t Offer High Tech Equipment

Are the POS systems provided by your processor holding your business back? If you are consistently frustrated with the ancient technology that you’re being forced to use, then that’s a problem. Additionally, if your processor hasn’t yet reached out to you to get your business set up with new EMV-compatible equipment, that’s a sure sign that they’re not putting your best interests first.

BONUS: Abtek will Pay for You to Make the Switch

If you’re not happy with your credit card processor, don’t worry—you don’t have to be stuck in a bad relationship. In fact, Abtek will help you break up with your processor and actually pay to break your current contract! Give us a call today at (800) 544-9145 to get started.